Cell tower lease buyers have a big advantage over sellers and it isn't even
close. I've watched for years, sellers either get a call from cell lease buyers or
even worse call the buyers themselves thinking they are going to play one
against the other and get the highest price possible. As I said, it's not even
Before you 'go it alone' you may want to spend a couple months learning how
secure your tower is with regards to being or becoming redundant: learn the
mathematics cell tower lease yields and what the buyers consider the carriers'
risk of being bought, merged or going out of business altogether.; spend hours
and hours doing the yield math the buyers require when they look at a lease;
know which buyers are more likely to bid highest. Now you'd be ready to begin.
Problem is talking to cell tower buyers without at least an informal bid process is
inviting yourself to a gunfight armed with only a knife.
When buyers talk to a seller they can smell the 'low lying fruit'. Let me give you
an example. Let's say you are talking to three or four potential cell tower lease
buyers and buyer #1 offers you $140,000 for yuour $1,000/month lease and
tells you that a monthly multiple of 140 is really very high. Buyer #2 over bids
buyer #1 by bidding $145,000 (a monthly multiple of 145 and talks you into the
deal telling you that buyer #1 is right when he told you that the 140 monthly
multiple is really high, but he'd give you $145,000 if you sign now. Buyer #3 has
not even bid yet and the deal is over. The fact may have been that the multiple
buyer #3 would have paid $180,000 or higher (a 180 multiple) or more.
Monthly multiples are not accurate measurements of value. The time frame to
the next escalation of your lease rent is a big determination of value when
buyers calculate their internal rates of return. Example: a cell tower lease with a
five year escalator with 1 month till the next escalation of 15% could be worth a
200 monthly multiple, or $200.000, while the same lease with 59 months till the
next escalation may only be worth less than a 180 month multiplier, or $180,000.
By allowing us to put together an open auction for you, we will alert the cell
tower lease buyers to the fact that they have a professional, that knows the
current market conditions representing them.
There are two ways we can do this. 1. We can sign you up for NO FEES (paid
by highest bidder) or 2. We can work directly for you (negotiated fee paid by
seller). The later better serves cell tower lease sellers as our loyalty is to legally
to you. and we will attract buyers they may not even know about. Often times
these unknown cell tower buyers are the historically highest bidders.
Call us for more information to talk about getting your auction on.
Own a cell site? Do you know what it is worth? We set record prices.
Cell Tower Buyers Have
a Big Advantage
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